TRX Drops 2.77% as Whales Sell 8.27 Million TRX

TRX, a prominent altcoin, experienced a notable decline of 2.77% over the past 24 hours, driven primarily by large holders, often referred to as whales, who sold significant amounts of the asset. These large traders collectively offloaded over 8.27 million TRX, valued at approximately $2 million. This selling spree was a strategic move to mitigate potential losses, as TRX had gained 9.84% in the preceding weeks and was approaching a key resistance level on the Bollinger Bands chart.

The Bollinger Bands, a technical indicator comprising three levels—upper resistance, lower support, and a middle band—suggested that trading near the upper resistance level historically leads to a price decline. Analysts predict that TRX could find support at two levels: the mid-zone at $0.2398 and the lower band support at $0.2246. The Average Directional Index (ADX) indicated that the downtrend is likely to continue, potentially pushing TRX below the mid-level band.

Despite the recent drop, the overall market sentiment for TRX remains bullish. Over 84% of TRX holders are currently in profit, which serves as an incentive for them to hold onto their assets even during market fluctuations. Additionally, the TRON blockchain generated over $2.2 million in trading fees within the last 24 hours, the highest among all other blockchains. This high level of activity suggests increased user engagement and a positive outlook for the blockchain's future.

The bullish environment is further supported by the Global In and Out of Money Around Price indicator, which maintains a positive sentiment in the market. This suggests that the recent price decline is likely to be followed by a rebound, aligning with the overall bullish market structure. Analysts forecast that TRX will experience a price decline initially, followed by a rally to the upside, indicating a potential two-way event in the near future.